Expert Zone
Straight from the Specialists
Where is the Indian stock market heading?
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The BSE Sensex has left us guessing about where it is headed. It’s not an easy task considering it had touched 20,509 in Jan 2010 and peaked at 21,207 in Jan 2008.
I wonder what will eventually trigger the directional move everyone seems to be waiting for. Will it be fears of heightened inflation resulting from an expected hike in diesel and cooking gas prices, a global event in the euro zone or some change in the U.S. economic scenario?
I am not sure that lending more money to defaulting nations will resolve the euro debt challenge just as the quantitative easing has not yet addressed U.S. economic concerns.
Time to look for some contra bets
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Indices were able to show some respite after a dismal performance in the last five weeks. However, foreign investors failed to push the Nifty beyond its well established 5600 levels. The increased option activity at 5600 and 5400 also confirms a trading range with a downward bias.
Value buying to emerge in key large caps
Selling pressure continued over fresh concerns of Europe’s sovereign debt crisis with derivative contract expiry providing the volatility. The market-wise rollovers were almost 83.2 percent as compared to 82.8 percent last month.
On the sectoral front, most of the rollovers were seen on the short side. Select long rolls were seen in pharma, OMCs and FMCG sector whereas sectors like infrastructure, banking, capital goods and technology saw short positions getting rolled in the month of June.
SBI-led weakness to continue, monsoon next trigger
(The views expressed in this column are the author’s own and do not represent those of Reuters)
It was yet another disappointing week for the markets as key indices corrected by about 1 pct as resumption of selling by foreign funds and a marginal rise in crude oil prices weighed on sentiment but the support levels of Nifty 5400 were not violated.
Markets Weekahead: Range-bound with positive bias; metal stocks to correct
(The views expressed in this column are the author’s own and do not represent those of Reuters)
It was a topsy-turvy week for the markets with key indices plunging below respective psychological barriers yet again only to recover on Friday on frenzy buying.
